i think at the moment it is a stain on his legacy. >> reporter: the u.s. officials are looking at what could be the birth of a new start with the less clear is how the u.s. will handle hamas, which is clearly empowered >>> and now, how all of this is playing out in israel and gaza, nbc's veteran middle east correspondent martin fletcher is in tel aviv tonight. and our chief foreign correspondent, richard engel is in gaza city, let's begin with you, richard. >> reporter: good evening, kate, israeli drones are still in the sky here, but for the first time no air strikes. and hamas is considering this a major victory, which it earned in blood. moments after the truce announcement, they came with flags, and drums and lots of guns, cheering death to israel, with a few deaths to americans mixed in. after a war hamas believes was its return to the world stage. people are coming out of their homes to join this spontaneous celebration. gaza has paid a heavy price, but here, they are convinced that hamas forced israel to accept the cease-fire. >> reporter: that pric